Gamestonk!
China's top leaders are apparently annoyed by the recent selloff in gaming stocks.
The Latest: Feng Shixin, an official from the Central Propaganda Department (CPD), was fired last week for causing panic in the gaming industry, per Reuters’ sources.
- Feng is the head of the CPD’s publishing department which oversees China's gaming regulatory body (NPPA).
ICYMI: On December 22, the NPPA issued a draft regulation threatening to set a user spending cap for in-game purchases – which would kneecap game companies’ revenues.
- The result was a bloodbath for Chinese gaming stocks.
Heads have now begun to roll (Reuters):
- “The five sources said Feng's removal was linked to rules the NPPA announced last month that sent stocks in the world's largest video games sector, including industry giant Tencent, plunging.”
Get smart: We said yesterday that there’s a good chance that policymakers will soften the gaming reg because it’s misaligned with Beijing’s broader push to boost confidence.
- That chance just got greater.
Get smarter: By firing Feng, top leaders are sending a strong message to officials that nothing should stand in the way of their efforts to boost economic growth and stability in 2024.